Question
1. Currently, the Brazilian real (BRL) trades at BRL 5.3785/USD. The risk-free rates are projected to be 0% in the USA and 2% in Brazil.
1. Currently, the Brazilian real (BRL) trades at BRL 5.3785/USD. The risk-free rates are projected to be 0% in the USA and 2% in Brazil. What will be the exchange rate 9 years from now?
2. You have 10,000,000 CAD to invest. You see the following three quotes:
HSBC: USD 1.15/EUR /// RBC: CAD 1.4/USD /// JP Morgan: CAD 1.3/EUR
Compute the profit (please give your answer in CAD e.g. 45000)?
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High Frequency Financial Econometrics
Authors: Yacine Aït Sahalia, Jean Jacod
1st Edition
0691161437, 978-0691161433
